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Cotton prices dip further

RECORDER REPORT

KARACHI: Cotton prices on Thursday dipped further on the cotton market which kept the spinners on sideline. The ginners were also adamant not to budge.

The rates committee revised prices downward substantially Niab was down by Rs. 57.50 to Rs. 1,822.50, K-68 shed same amount to Rs. 2,110 and MNH-93 lost Rs. 57.50 to Rs. 2,154 with sales tax.

In physical trading also prices softened. They ruled between 1,400 and Rs. 1,825 without sales tax.

Signals from New York was that cotton futures were higher across the board. Spot March rose by 0.50 cent to 55.80 cents a pound after trading between 55.90 and 55.05 cents a pound. The other May gained 0.50 cent to 57.67 cents a pound after trading between 57.70 and 56.90 cents a pound.

The experts have devided opinion on the prices. Some of often said that spinners are likey to succeed in pulling prices down. They have on their back the international bearish trend and bumper crop locally. But others said that ginners harbour the idea of huge loss and determined not to concede more.

"TCP is great support and unless it yields to spinners pressure and supply them cotton, the ginners would continue to reap good gains," sources said.

Following deals were struck: 400 bales of Sultanabad at Rs. 1,400; 200 bales of Mirpurkhas at Rs. 1,400; 200 bales of Khupro at Rs. 1,450 and 1,000 bales of Rahimyar Khan at Rs. 1,825.

KCA SPOT RATES

Niab Rs. 1822.50

K-68 Rs. 2110.00

MNH-93 Rs. 2154.50

CAKE FUTURES

Futures maintained downward drift on the forward cottonseed oilcake market on Thursday amid fairly large trading.

The ruling March contract commenced unchanged at Rs. 334.30 and was quoted highest at Rs. 334.90. Later in depressed trading it was quoted down at Rs. 333.80 but wound up 30 paisa better at Rs. 334.10 before closing at Rs. 334.10, to show a loss of 20 paisa.

The other, May contract commenced 50 paisa better at Rs. 365.60, and in the process of day's trading it gained 30 paisa to claim to be the highest at Rs. 365.90. Later trading depressed and it lost 80 paisa to turn lowest at Rs. 365.10 but wound up 60 paisa better before closing at Rs. 365.70, to show a loss of 60 paisa to Rs. 365.70.

Trading activity improved and turnover estimated at 600 lots.

MARCH VAIDA

Last Closing Rs. 334.30

Thursday's Opening Rs. 334.30

Highest Rs. 334.90

Lowest Rs. 333.80

Closing Rs. 334.10

MAY VAIDA

Last Closing Rs. 366.10

Thurday's Opening Rs. 365.60

Highest Rs. 365.90

Lowest Rs. 365.10

Closing Rs. 365.70